One North East unveils £33m cuts package

Regional development agency One North East has announced £33m in cuts to projects.

The agency, which is due to be scrapped by the coalition government in 2012, said the move was a "difficult and painful" decision.

Among projects losing support are the creation of an eco-village in Weardale, a science quarter in Newcastle and a white water course on Teesside.

The agency also said 44 of its 400 staff would lose their jobs this month.

Alan Clarke, One North East chief executive, said: "This has been a difficult and painful process to manage.

'Very challenging'

"As far as possible cuts to business and private sector job creation have been minimised, but inevitably the cuts will have a major impact across all of our business and every part of the region.

"I fully appreciate the impact this will have on our partner organisations who we have contacted earlier today to inform them how the reductions will affect them.

"This is a very challenging time for One North East as we administer the wind down of the Agency and the transition of our activities in the best interests of the North East economy.

"We will work closely with our business and local authority partners who have the opportunity to build upon the firm foundations that now underpin the regional economy."

The package of cuts are being made across all areas of the agency's business as the government seeks to find spending reductions across the public sector of £6.2bn in 2010-11.

More on this story

Around the BBC

Related Internet links

The BBC is not responsible for the content of external Internet sites